Tierra Fertil Harvard Case Solution & Analysis

Hortifruti with Tierra Fertil (fertile land) program was established in Costa Rica in 1970 as a result of initiatives by Uribe family, founders of the Corporacion de Supermercados Unidos - Corporacion de Companias Agroindustriales group (CSU-CCA). In 1973, only five supermarkets, the group had a hard time supplying its selling points to the quality of agricultural products in response to its customers' demands. As a result, this year, Hortifruti-owned company CCA - began to organize the Costa Rican farmers to establish certain business criteria, including income and the minimum and maximum quality standards. Once these criteria have been identified, Hortifruti decided to initiate the production program based on the requirements of the market. Safer and hygiene products have been promoted as a package and transport stages, including specific requirements for suppliers. Small farmers, who were not able to meet these requirements and who lived on the road to the point of sale, if their products are taken at the farm. In 2005, Wal-Mart, the largest retailer in the world, bought the CSU-CCA. Strategy, business model, management and organization of work of the newly acquired organization have been revised in order to adapt them to the equivalent of Walt-Mart. Given that the program Tierra Fertil caused the problem in the technical and economic infrastructure development, education, financial resources, and cultural differences, the initiative is a new concept in the "normal" value proposition, as well as a deep understanding of local needs and CSU-CCA believed that Wal-Mart Central America must continue the program. Jorge Cordero, recently promoted agriculture director for Central America, responsible for developing and presenting arguments to help Wal-Mart executives to decide on the usefulness of the model food operations in Central America. "Hide
on Leguizamon-Francisco, John Ickis Source: Social Enterprise Knowledge Network 13 pages. Publication Date: 01 November 2009. Prod. #: SKE133-PDF-ENG

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